Sailing away- Simpson Marine sells dreams to super-rich

by Global Times on 23 Apr 2010 Beijing's luxury magazines like to run aspirational photos of tanned beautiful people draped across the deck of a yacht.
China has been building new marinas for the yachts of the capital's tycoons and state sailing teams, according to Robin Wyatt, brand manager and senior broker for Azimut, an Italian brand yacht, at Simpson Marine.

Regarded as the largest yacht dealer in Greater China, Simpson Marine sells far more boats in Hong Kong, but sees the Chinese mainland as a key market for the future.

What's the price and size range of the boats you're selling?
We sell everything from a Sea Ray [ski boat] for about 500,000 yuan ($73,234) to a 100-foot yacht for about 60 million yuan ($8.79 million).

Do you have clients in inland cities like Beijing and, if so, what kind of boat do they buy?
A customer from Beijing keeps his boat in Hainan. It's a 70-foot Azimut.

How many boats have you sold in the mainland?
About 40 or 50. But 30 of those were to a regatta organizer in Shenzhen, the China Cup.

What kind of taxes does China levy on (imported) yachts?
Sales and luxury taxes all amount to 40 percent of the sales price.

Do you have strong competition in Chinese mainland? What's Simpson's competitive edge?
Yes, plenty of competition. We offer a better after-sales service. We've been around a long time and we have offices and maintenance yards in Hainan, Hong Kong and Shenzhen.

How much extra (as percentage of the boat's price) would a buyer typically spend on accessories?
Normally it's full service. We may have to source other stuff like a dingy [small sail boat] depending on the buyer's requirements.

There's a popular impression that the world's leading yacht makers are all European. Is that true?
Yes. Europe has a history and heritage in yachts. Italy leads in motor driven yachts, while the French lead in sails.
European boat makers usually have the edge in design over the US, which is the world's number two yacht maker. For the buyer, a yacht's very much a status symbol. It's like buying a Mercedes.

What are the key 'dealmakers' for Chinese buyers - is it price or particular boat specifications?
Price is important but status and face are more so. They want a well-known brand. Our clients would very rarely compare a Chinese with an Italian-made boat.

Is there a preference for sail/motor driven boats?
Motor boats, part of a worldwide trend. Beginners are a bit threatened by a sail-driven boat because in wind it keels (bends) over in wind. Plus it's slower. With a motor boat you just get in and turn the key.

Is there any such thing as a sails-only yacht - do all crafts have a motor on board?
All boats have a motor just to get you out of the marina, unless it's a small dingy type.

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